objective & investment philosophyinternalsoft.rathi.com/leademails/images/mnc_...
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Objective & Investment Philosophy
Focus on consistency of return and risk moderation by
investing in Multinational Companies listed in India.Objective
Investments into listed companies in India in which the foreign shareholding is over 50%
and/or the management control is bestowed in foreign company and/or the technological
and managerial know-how brought in by foreign partner/investor.
MNC PMS
Successful Business Model
MNC’s benefit from the economy of
scales by spreading R&D expenditures
and advertising costs over their global
sales, pooling global purchasing power
over suppliers, and utilizing their
technological and managerial know-how
globally with minimal additional costs.
MNC’s can use their global presence to
take advantage of underpriced labor
services available in certain developing
countries, and gain access to special
R&D capabilities residing in advanced
foreign countries
MNC PMS
Strong Corporate Governance
MNC’s are generally rated high for
their corporate governance standard.
MNC’s depict high transparency and
accountability with well laid out
policies and regulatory framework,
internal control and risk
management.
This provide good comfort for an
investor who would not fall prey to
any negative impact on investment
due to corporate mis-management
and fraud.
MNC PMS
Healthy Balance Sheet MNC PMS
Special Opportunity
Sr. CompanyCorporate
ActionAnnouncement
datePrice before
AnnouncementDate
Price on closure of offer
% Gain
1 Fulford India Delisting 25-Apr-14 682 30-Jul-15 2400 252%
2 Alfa Laval Delisting 16-Sep-11 1965 12-Apr-12 4000 104%
3 HUL Open Offer 29-Apr-13 497.6 04-Jul-13 600 21%
4Glaxo
ConsumerOpen Offer 23/11/2012 3049 30-Jan-14 3900 28%
5 Siemens Open Offer 28-Jan-11 727 13-Apr-11 930 28%
MNC companies during the holding period provides healthy dividend and capital
appreciation by earnings growth and sometime carries an additional trigger for value
appreciation in form of corporate actions like Open offers, Buybacks and Delisting etc.
This usually add substantial appreciation to the share price enhancing investors ROI.
Below are some illustrations of the same.
MNC PMS
NIFTY MNC Index Analysis/Study
NIFTY MNC Index has good correlation with NIFTY 50 Index. However the Beta stands at 0.8
Annualised returns of NIFTY MNC Index is higher compared to NIFTY 50 Index and Volatility is lower.This shows a favourable risk reward for NIFTY MNC against NIFTY 50 Index
Note: The above study is done on Nifty MNC Index which constitute 15 stocks. The actual portfolio in PMS could deviate
compared to NIFTY MNC Index. The above analysis is not an indicative of future performance.
From 2003 to 2017NIFTY MNC
IndexNIFTY 50
Index
Annualised Return 18.21% 16.30%
Average 3 Year Rolling Return p.a.
17.70% 15.42%
Annual Volatility 21.4% 23.27%
Beta with NIFTY 50 0.8
Correlation with NIFTY 50
0.9
A study done on Nifty MNC Index which constitute 15 stocks shows favorable risk reward a
portfolio of MNC company could deliver.
53.1%
18.5%20.6%
13.1%
18.2%
28.6%
8.3%
12.3%
5.5%
16.3%
1 YEAR 3 YEAR 5 YEAR 10 YEAR 15 YEAR
Annualised Return as on 31st Dec 2017
NIFTY MNC INDEX NIFTY 50 INDEX
MNC PMS
Portfolio Strategy
Risk
Re
ward
Low High
High
MNC
Portfolio
Portfolio
Positioning
Medium
Risk &
Reward
Multicap Style of investment, Fund manager may change the allocation
according to market condition
Allocation
Mid Cap
Small Cap
Large
Cap
Max Sector
Allocation 30%
Max Single
Stock
Allocation
15%
MNC PMS
Top Holdings and Allocation
Data as on 31st August 2018
The current model client portfolio comprise of 19 stocks. Portfolio is well
diversified across market capitalization. We have shown top 5 stocks
based on current weightage in each of the market capitalization.
Sr No Large Cap % Holdings
1 Maruti Suzuki India Ltd. 10.9%
2 Britannia Industries Ltd. 8.1%
3 Hindustan Unilever Ltd. 7.3%
4 Nestle India Ltd. 6.5%
5 Glaxosmithkline Pharmaceuticals Ltd. 5.8%
Sr No Mid Cap % Holdings
1 Bata India Ltd. 8.1%
2 Whirlpool Of India Ltd. 5.3%
3 Kansai Nerolac Paints Ltd. 4.7%
4 Abbott India Ltd. 4.7%
5 SKF India Ltd. 4.6%
Avg Market Cap (cr)
Large Cap 102740
Midcap 12049
Small Cap 2019
Overall Portfolio 84516
MNC PMS
Large Cap, 61%
Mid Cap, 35%
Small Cap, 2%
Cash, 1%
Market Cap Allocation
0% 5% 10% 15% 20% 25% 30%
FMCG
Automobile& Ancillaries
ConsumerDurables
CapitalGoods
Healthcare
Paints
Power
Diversified
Paper
Sector Allocation
Portfolio Performance
10Note: Performance is net of all expenses of the initial client based on Flat Fee Model.
Disclaimer: Past Performance is not necessarily indicative of likely future performance
MNC PMS
5.14%
9.1% 9.4%
7.9%
2.38%
5.6% 5.3%
2.2%
0%
2%
4%
6%
8%
10%
12%
14%
1 Month 2 Month 3 Month 4 Months
Absolute Performance as on 31st August 2018
MNC PMS NIFTY MNC Index
Founder & Promoter (Anand Rathi Group)
One of the leading financial and investment experts in India and South-east Asia, Mr. Anand Rathi on
acquiring a Chartered Accountancy qualification had a long, successful and illustrious career of over 40
years as a core member of the legendary late Mr. Aditya Birla’s business group. He was actively involved
in all strategic initiatives, being instrumental in shaping the group’s cement business, and spearheaded its
foray into diverse businesses in manufacturing and services.
In 1999 as the President of BSE, he was the driving force behind the expansion of BOLT, the BSE Online
Trading System. He also set up the Trade Guarantee Fund and played a vital role in setting up the Central
Depository Services (CDS).
A respected member of the ICAI, he is popular among chartered accountants and finance professionals as
also public life in general because of his active philanthropy and Corporate Social Responsibility (CSR)
initiatives. These include training and career opportunities to bright young professionals.
Anand RathiFounder & Chairman
Pradeep GuptaCo Founder &
Vice Chairman
Mr. Gupta brings with him long experience of setting up and running a variety of business enterprises. His
first exposure was in the family-owned textiles business, however is passion for financial markets led to his
starting Navratan Capital & Securities Pvt. Ltd, later merged with Anand Rathi Financial Services.
At AnandRathi, he has played a pivotal role in laying the foundation of the Institutional Broking and
Investment Services arms of the group. His ground-breaking spirit has helped the firm to rapidly expanding
its footprint and emerge as a leading capital market player in the country.
He has been instrumental in leading the group to bag prestigious accolades and often appears in the
media, sharing his views and insights on macro-economic aspects.
He is also an active member of the Rotary Club of Bombay.
Fund Management Team
Mayur Shah - Fund Manager
More than 12 years of rich experience in Investment advisory, Product Development
and Portfolio Management
Working with Anand Rathi since 2007 across Portfolio Management and Private
Client Group Equity Advisory
Started Career with “Kotak Securities Ltd” in 2005 as an Investment Advisor
subsequently got into developing Equity products and running the same
Qualified MBA (Finance) from Mumbai University and Certified Financial Planner
Vinod Vaya
More than 12 years of rich experience in Investment advisory, Portfolio Management
and research
Worked in past with Standard Chartered Securities, Religare Securities, Enam
Securities.
PGDBM from Mumbai
Setup fee : 1% (Upfront one time)AMC fees : 2.5% p.a (Charged Pro-rata at end of each quarter)Brokerage : 0.25% on Equity delivery transactionExit Load : 3% -1st Year, 2% - 2nd Year, 1% - 3rd Year.Other Charges: GST, Other charges levied by Exchange, Custodial charges levied by custodian and any other statutory charges.
Product Features
Minimum investment
Portfolio:
Themes offered
Type of instruments
Benchmark
Rs. 25 lakhs.
15-20 STOCKS, diversified across sectors.
Diversified portfolio of Multinational Companies listed in India with controlling stake with foreign holder.
Equity & Equity Related Instruments, Fixed Income Instruments, Cash & Cash Equivalent
NIFTY MNC and NIFTY 50
BenefitsDedicated Web Login for client to monitor portfolio.A relationship manager to cater to investment needsConstant monitoring of the portfolioAudited statement at year end for tax filing purpose.SupportBack office customer service desk to address client queries.
MNC Portfolio
Fees & Charges
PMS registered under : Anand Rathi Advisors Ltd.
PMS Registration Number : INP00000282.
Custodian : IL&FS Securities Services Ltd.
OFFICIAL ADDRESS : 4 th Floor , Silver Metropolis, Jaicoach Compound Opposite Bimbisar Nagar, Goregaon(East), Mumbai - 400 063. India
BOARD LINES : +91 22 4001 3700
All Investment are subject to Market Risk.
Please read the risk factors before investing in the same.
Past Performance is not necessarily indicative of likely future performance
Specific Disclaimer
Registration Details
Name : Vinod VayaTel : 022 – 4001 3947Email ID : [email protected]
Product Support
Name : Sheetal Kotian / Preeti More Tel : 022 – 4047 7135 / 7193Email ID : [email protected]
Back Office Support
Private & Confidential
Disclaimer:-This presentation has been issued by Anand Rathi Advisors Limited (ARAL), which is regulated by SEBI. Neither the information norany opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or otherderivatives related to such securities ("related investments"). ARAL and its affiliates may trade for their own accounts as market maker / jobberand/or arbitrageur in any securities of this issuer(s) or in related investments, and may be on the opposite side of public orders. ARAL, itsaffiliates, directors, officers, and employees may have a long or short position in any securities of this issuer(s) or in related investments. ARAL orits affiliates may from time to time perform investment banking or other services for, or solicit investment banking or other business from, anyentity mentioned in this report. This presentation is prepared for private circulation. It does not have regard to the specific investment objectives,financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regardingthe appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand thatstatements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and thateach security's price or value may rise or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates ofexchange may adversely affect the value, price or income of any security or related investment mentioned in this report.